Abstract
Lack of "Proactive Services" from Suppliers Threatens Customer
Loyalty
Attracting and retaining customers is one of the primary concerns of
equipment suppliers in the water and wastewater treatment market. Product
quality and performance is more or less a given in this market, compelling
suppliers to consider alternate ways of maintaining a satisfied customer base.
Suppliers that can convert this challenge into a significant opportunity are
most likely to succeed. Providing services in a more proactive manner - for
instance enhanced and customized after sales service and phone support, product
training with more troubleshooting exercises, and quick response times - can
help equipment suppliers truly differentiate themselves from the competition and
retain existing as well as acquire new customers.
This end-user analysis from Frost & Sullivan identifies and discusses all
aspects of customer expectations from suppliers in the water and wastewater
treatment market: price, customer service, reliability, product quality,
technological skills, and delivery time. A thorough analysis of customers'
current satisfaction levels with suppliers as well as competitive factors that
could induce them to shift loyalties is provided. This enables suppliers to
evaluate their performance in terms of those factors and decide on strategies to
adopt to gain a more competitive edge in the market.
Key Drivers Include Aging Infrastructure and Regulatory Demands
"Aging water facilities and regulatory constraints together are driving
growth of the repair and replacement and technology upgrading market," says
the analyst. Since most water systems in the United States - drinking and
wastewater - were built in the 1900s and last upgraded as far back as the 1970s,
there is a great need to repair and rehabilitate these systems.
Stringent regulations introduced by the Environmental Protection Agency (EPA)
to meet the demand for better-quality drinking water and address public concern
about pollution of the waterways from insufficiently treated effluent discharge
are also calling for treatment upgrades or changes. The rules aim to reduce
drinking water contaminants such as arsenic, N-Nitrosodimethylamine (NDMA), and
perchlorate, and increase specifications in wastewater effluent discharge levels
to provide safe water systems for the public.
Market Sees Positive Growth Trends
Suppliers of small to large specialized equipment as well as pipes and
connection systems are likely to benefit as opportunities rise in the repair and
replacement market. A greater demand for drinking water supply due to population
growth and increase in consumption drives the need to build new systems or
expand existing plants. However, reduced Federal funding for the construction of
new plants is fuelling the expansion of existing plants.
"This presents greater opportunities for environmental engineering and
consulting firms involved in the design, planning, and construction of the
expansions and suppliers of equipment and materials for the same," says the
analyst. The cap on Federal funding is also providing scope for increased
public-private partnerships. Lastly, the growing focus on security in the United
States is creating potential for installation of water security systems, per
EPA's ruling to complete vulnerability assessment by 2004.
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